The total offshore asset allocation of Australian super funds has reached 47.8 per cent in 2023, according to the biennial NAB Super Insights Report.
The report, which surveyed 41 funds comprising 85 per cent of the sector’s assets under management according to APRA data (excluding SMSFs), revealed an offshore allocation jump from 46.8 per cent in 2021.
It also found that funds are favouring unlisted asset classes, with private credit and unlisted international infrastructure the most favoured sectors, followed by unlisted property.
Other findings include:
- 57 per cent of funds changed their target currency exposure (or hedge ratio target) for the MySuper or Balanced Fund in the past two years.
- 88 per cent of Funds indicated that Your Future Your Super Performance tests influence how their fund sets their strategic asset allocation and implement their investment strategy.
- 35 out of 41 funds invested in emerging markets (EM) with an average of 4.9 per cent of their assets deployed in EM.
- Approximately half of funds in this year’s report have formal net zero targets, with another 24 per cent currently considering.